JNK India IPO oversubscribed over 28 times, receives strong investor interest

The initial public offering of heating equipment maker JNK India Ltd was subscribed over 28 times.

The issue, at a price band of ₹395-415, received bids for 31.10 crore shares against the offer size of 1.10 crore shares (Net off anchor portion).

The IPO combines a fresh issue worth ₹300 crore and an offer for sale (OFS) of up to 84.21 lakh equity shares (worth ₹349.47 crore) by promoters and an existing shareholder. Promoters Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters Co Ltd, and Mascot Capital and Marketing Pvt Ltd, and shareholder Milind Joshi are offloading shares in the OFS.

While the QIB was subscribed a whopping 75.72 times, the portion allocated to NIIs and retail investors received bids 23.19 times and 4 times, respectively.

As part of IPO, the company had garnered ₹195 crore from anchor investors who included marquee investors such as Goldman Sachs, Kotak Mahindra Mutual Fund (MF), HDFC MF, LIC MF, DSP MF, Bajaj Allianz Life Insurance Company and Aditya Birla Sun Life Insurance Company.

Proceeds from the fresh issue will be used for funding working capital requirements (worth ₹262.69 crore) and general corporate purposes.

JNK India is engaged in thermal designing, engineering, manufacturing, supplying, installing, and commissioning heating equipment and caters to domestic and overseas markets. Heating equipment is required in industries such as oil and gas refineries, petrochemicals, fertilisers, hydrogen, and methanol plants, among others.

The company’s clientele includes Indian Oil Corporation, Tata Projects, and Rashtriya Chemicals & Fertilisers.

IIFL Securities and ICICI Securities are the book-running lead managers of the public issue. The equity shares are proposed to be listed on the BSE and the NSE.